Teo Chee Hean, Senior Minister of Singapore, has confirmed that there is no conflict of interest following his review of the rental of Ridout Road by Ministers K Shanmugam and Vivian Balakrishnan. In a parliamentary session on July 3, 2023, Teo explained that both ministers and the public officers involved had duly declared any potential conflict of interest and followed proper processes to prevent any actual conflict from arising.
Although there was no conflict of interest, Teo emphasized that the Public Service Division (PSD) would utilize this case as an additional example to reinforce the importance of public officers acting with integrity. As a result, the PSD will introduce rules that require public servants to make declarations before renting government properties managed by their agencies.
Teo reiterated the findings of his review, which relied on the independent and authoritative investigations conducted by the Corrupt Practices Investigation Bureau (CPIB). He emphasized that the CPIB reports directly to Prime Minister Lee Hsien Loong and is known for its thoroughness and independence.
According to Teo, the CPIB found no evidence of corruption or criminal wrongdoing in the rental transactions of the Ridout Road properties by Shanmugam and Balakrishnan. The investigation concluded that the Direct Tenancy rules were fairly applied, and there was no preferential treatment given to the ministers or their spouses. Furthermore, there was no indication of any abuse of position for personal gain.
Teo highlighted that a potential conflict of interest could have arisen if Shanmugam had remained in the chain of command as the Ministry of Law oversees the Singapore Land Authority (SLA). However, Shanmugam removed himself from the decision-making process entirely, and no matters were raised by the SLA to the Ministry of Law or any of the ministers throughout the rental process.
Teo clarified that he was not involved in the rental process, as no matters were raised to him regarding any aspect of the transaction. He acknowledged that Shanmugam had taken effective steps to eliminate the potential conflict of interest and prevent any actual conflict from arising.
Regarding the rental of 31 Ridout Road, Teo stated that no conflict of interest arose as Balakrishnan's official responsibilities did not include the SLA. The CPIB also noted that there was no preferential treatment given in the rental transaction, and all prospects and tenants were to be treated equally.
Teo further revealed that the SLA Valuer was unaware of the prospective tenant's identity throughout the episode involving Shanmugam. The Valuer only learned about Shanmugam's tenancy after it was reported in the media. Additionally, the Valuer did not know the negotiated rental amount.
To reinforce integrity and prevent conflicts of interest in future rental and valuation matters, the Public Service Division will collaborate with relevant ministries and statutory boards to introduce a standard declaration requirement for selected groups of officers involved in leasing and valuation. Officers in these organizations, who have access to privileged information or can influence decision outcomes, will have to declare that they have taken adequate steps to prevent conflicts of interest.
Teo concluded his statement by highlighting the paramount importance of maintaining high standards of integrity and accountability in the government and throughout Singapore. He acknowledged the extensive questions raised by Members of Parliament, which reflect the significance placed on the integrity and quality of the country's system of government.
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